WITH ONE in seven people out of work, few would disagree with Minister for Jobs, Enterprise and Innovation Richard Bruton that, as a society, we must become obsessed by job creation. The degree to which Government parties have buried their differences in pursuit of that objective and engaged in innovative thinking will become clear at the end of this month when an “Action Plan on Jobs” is published. Ideas to improve competitiveness will, inevitably, bring friction. But giving hope and opportunity to those out of work should take precedence.
The Government’s room for manoeuvre has been seriously constrained by IMF-EU demands that measures to promote job creation should be fiscally neutral. As a consequence, last year’s “pathways to work” scheme disappointed many. Despite that, initiatives to promote the tourism sector brought positive results. More educational and training places were provided. And incentives to employ and to retain low-paid workers were introduced. This time, the Government hopes an additional €100 million can be raised for job creation from pension funds and foreign capital, but acknowledges specific targets for 2012 will be largely framed within existing budget allocations.
Much of the focus will be on increasing competitiveness, reducing bureaucracy and promoting easier access to finance and credit. The plan will be reviewed and revised annually by the Ministers involved, under the direction of Taoiseach Enda Kenny. Encouraging indigenous start-up companies and growing them on will be given particular attention, as will the promotion of community involvement in new enterprises. Foreign direct investment, particularly in manufacturing, cloud computing, health and life sciences and the green economy will be supported. All details of the programme will have to be approved by Cabinet.
By now, Ministers must be aware the public is preparing to judge them not just on their pre-election commitments but on their capacity to manage the economy. Getting people back to work was the key theme of both Fine Gael and the Labour Party. It has not happened. An export-driven recovery, based largely on multinational companies and the agri-food sector, has slowed because of reduced domestic spending and the cost of bank bailouts. The EU Commission expects economic growth of 1 per cent this year, but the number of people at work may shrink. In those circumstances, special job-creation measures are vitally important.
In the years before the economic crash, Ireland lost its competitiveness as costs, charges and rising incomes chased each other in a destructive pattern. Employers, workers and professional groups are now going through the painful process of revising their living standards downwards.
The forthcoming “Action Plan on Jobs” will deal with a range of factors that inhibit job creation while providing incentives in specific areas. Its ability to restore public confidence may be as useful as the creation of jobs and new opportunities.